WRITTEN QUESTION No. 3102/98 by Marie-Noëlle LIENEMANN to the Commission. Directive on insurance
Date: 1998-10-08
Institutions: European Parliament, LIENEMANN
Subjects: directive (EU), freedom to provide services, insurance, mutual assistance scheme, right of establishment

C 207/30

Official Journal of the European Communities

EN

21.7.1999

(1999/C 207/038)

WRITTEN QUESTION P-3102/98

by Marie-Noëlle Lienemann (PSE) to the Commission

(8 October 1998)

Subject: Directive on insurance

Non-profit-making mutual associations play an essential part in ensuring that all citizens have access to
treatment and in developing preventive measures.

They help to achieve solidarity in aid of better welfare cover for European citizens.

Bearing this in mind, does not the Commission believe it advisable to lay down a legislative framework
different from that provided for in the directive on insurance?

More generally, how does the Commission intend to take account of the special characteristics of mutual
associations and to protect their interests?

Answer given by Mr Monti on behalf of the Commission

(16 November 1998)

The Commission recognises the importance of the role played by mutual associations in the non-profit sector
within the Community.

Where the business of insurance is concerned, the relevant Community directives lay down the conditions for
carrying on this activity in the single market, in accordance with the principles of freedom of establishment
and freedom to provide services enshrined in the EC Treaty. They establish arrangements for the taking-up and
pursuit of these activities under which an insurance company, irrespective of its legal form, is required to
maintain a financial position that will enable it to honour at all times the commitments deriving from
insurance contracts written by it. These arrangements are based on close monitoring of the financial aspects of
the insurance company, which is required among other things to have at all times adequate technical
provisions that are covered by matching assets and invested according to strict rules, a sufficient solvency
margin for its activities that is calculated according to the provisions of the Insurance Directives, sound
administrative and accounting procedures, and adequate internal controls.

The Insurance Directives already contain provisions which take into consideration the specific nature of
insurance bodies having the form of a mutual association. These provisions relate in particular to the
constitution of own funds (solvency margin). They permit non-life mutual associations to call in additional
contributions to constitute up to 50 % of their solvency margin. The Directives also authorise Member States
to provide for a 25 % reduction in the minimum level of the guarantee fund required by the Directives in the
case of mutual associations.

The Directive on the supplementary supervision of insurance undertakings in an insurance group, which was
adopted by the Council and Parliament on 27 October 1998 (1), takes full account of the concern expressed by
mutual associations during the legislative process. It creates the conditions necessary to enable mutual
associations, which by definition cannot have cross-holdings, and insurance undertakings in the form of
companies to be treated on an equal basis as regards solvency requirements when they belong to an insurance
group.

The work under way on the Statute for a European Mutual Society and the Statute for a European Cooperative
is also aimed at providing mutual associations in Member States with a tailor-made legal instrument that will
enable them to carry on their activities in the internal market.

(1) OJ L 330, 5.12.1998.